
Fun and launches at Festival of Motoring
What to see at the Festival of Motoring.
- Industry News
- 28 August 2025
The Reserve Bank (SARB) has announced a 25-basis-point cut to the repo rate, reducing it to 7%. As a result, the prime lending rate for commercial banks will drop to 10.50%.
“The National Automobile Dealers’ Association (NADA) welcomes this decision, which offers meaningful relief to consumers and businesses alike in a persistently challenging economic climate. Lower interest rates enhance vehicle affordability and will help energise demand in both the new and pre-owned vehicle markets, particularly in cost-sensitive segments,” says Brandon Cohen, Chairperson of NADA.
The rate cut comes amid heightened global uncertainty, with South Africa facing the prospect of export tariffs as high as 30% following an impending trade deadline set by the United States. While broader economic challenges remain, SARB’s decision sends a positive signal and may help strengthen domestic resilience.
Brandon notes that although this may be the final window for monetary easing in the near term, with inflation having remained within SARB’s 3% to 6% target range for nine consecutive months, the cut is a step in the right direction. “The automotive retail sector remains resilient, and dealers continue to support customers through tailored finance solutions and value-driven offerings,” he adds.
In anticipation of DealerCon 2025, Brandon Cohen (photo), Chairperson of the National Automobile Dealers’ Association (NADA) of South Africa, emphasised the critical role of the upcoming summit in empowering automotive dealers amid significant market shifts.
The pension fund of German car manufacturer, Mercedes-Benz, has disposed of its entire shareholding in Japan's Nissan Motor for 47.83 billion yen (£255 million) on 26 August, according to a source familiar with the transaction.